Malaysia Oversight

MAA: Clear Policies, Tariffs And Incentives In 13MP Pivotal To Turn Malaysia’s Hydrogen Car Technology Ambition Into Reality

By Bernama in September 16, 2025 – Reading time 4 minute
MAA: Clear Policies, Tariffs And Incentives In 13MP Pivotal To Turn Malaysia’s Hydrogen Car Technology Ambition Into Reality


By Zairina Zainudin

KUALA LUMPUR, Sept 16 (Bernama) — Malaysia has taken the right step in making hydrogen car technology a national priority of its clean energy initiatives under the 13th Malaysia Plan (13MP), but the right policies, tariffs and incentives are key ingredients to make it work.

Giving the thumbs up for the inclusion of hydrogen mobility in the country’s development plan, the Malaysian Automotive Association (MAA), however, cautions that the right policies and practical frameworks are urgently needed to turn ambition into adoption of a technology that few countries are currently using.

Among countries using hydrogen car technology are , Japan, , the United States and Germany, while Malaysia is reportedly developing such technology for future fuel use, focusing on fuel cell electric vehicles like the Toyota Mirai.

MAA president Mohd Samsor Mohd Zain said it was a step in the right direction towards sustainability in the government’s vision to identify hydrogen, alongside key clean energy solutions such as nuclear and carbon capture. “With the right policies, clear tariffs and right incentives, it will help the auto industry to accelerate the adoption of hydrogen vehicles in the Malaysian market,” he told Bernama.

Under the country’s five-year national development roadmap, hydrogen is placed at the centre of Malaysia’s next-generation mobility ambitions.  The plan views hydrogen vehicles as a viable solution to decarbonise sectors that are harder to electrify, particularly long-haul and heavy-duty transport – areas where conventional battery-electric vehicles may face operational limitations.

 

Carbon pricing to drive change

MAA also sees the planned introduction of carbon tax and carbon trading announced under the 13MP as key tools that could reshape vehicle procurement and fleet strategies in the public and private sectors.

Mohd Samsor said these policies, if implemented well, could drive the shift toward low-emission fleets by making conventional polluting vehicles less financially attractive. The implementation of these policies could also help accelerate the development of much-needed electric vehicle (EV) charging infrastructure nationwide, further supporting Malaysia’s transition to cleaner and more sustainable mobility.

 

TVET: Building talent for clean mobility

Beyond energy transition, the automotive industry is also encouraged by the plan’s emphasis on strengthening technical and vocational education and training (TVET), which MAA believes is a critical enabler of the future mobility ecosystem.

“We support the government’s initiative to strengthen TVET to produce more skilled technical expertise and technicians, which is essential for the industry’s shift toward electric, connected and autonomous vehicles,” Mohd Samsor said.

MAA believes a skilled local workforce will also be instrumental in supporting strategic initiatives like the Automotive High-Tech Valley (AHTV), envisioned as a hub for high-value automotive manufacturing and innovation.

Mohd Samsor said this would also ensure that Malaysia is ready with the right expertise to drive next-generation mobility technologies as the shift to electric, autonomous and connected vehicles requires a new kind of workforce.

“AHTV will play a key role by attracting high-tech investment, development of research and development (R&D) facilities and test laboratories. With this in place, it will strengthen the local vendor ecosystem, which will help boost localisation activities in line with future mobility needs,” he added.

 

Development spending and industrial growth

With RM430 billion allocated for development expenditures (DE) under the 13MP, the government’s commitment to infrastructure growth is expected to indirectly benefit the automotive sector, particularly commercial vehicle segments. Generally, public infrastructure projects drive demand for vehicles. This would then create a ripple effect across the entire industry, from manufacturing to after-sales.

“The 13MP shows the government’s strong commitment to economic and industrial growth, with RM430 billion allocated for development. This will have a positive spillover effect on the automotive sector,” said Mohd Samsor.

The association also views that the focus on high-growth, high-value (HGHV) industries will also benefit the auto sector by encouraging localisation of advanced components like EV parts and safety systems.

“AHTV will play a key role by attracting high-tech investment, development of R&D facilities and test laboratories.  With this in place, it will strengthen the local vendor ecosystem, which will help boost localisation activities in line with future mobility needs,” he pointed out.

Prime Minister Datuk Seri Ibrahim, in unveiling the 13MP on July 31, said a total investment of RM611 billion from 2026 to 2030 would be allotted to transform Malaysia into a more inclusive, sustainable and technologically driven nation. Of the total, RM430 billion will come from the government’s development expenditure, RM120 billion from government-linked companies and government-linked investment companies (GLCs and GLICs) and RM61 billion through public-private partnerships (PPPs).

The allocation for DE represents RM15 billion, or a 3.6 per cent increase from the RM415 billion allocated under the 12MP, translating to an expenditure of RM86 billion per annum, the highest under a Malaysia Plan.

— BERNAMA


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